Gladys Berejiklian and Daryl Maguire (Images: AAP)

Did former NSW premier Gladys Berejiklian facilitate the potential misuse of $35 million of public money to help the electoral prospects of former boyfriend Daryl Maguire? And if so, was it “corrupt conduct” under the NSW Independent Commission Against Corruption Act? 

These are the two central questions to be answered in the Independent Commission Against Corruption (ICAC) inquiry Operation Keppel, which commenced in Sydney this morning. Berejiklian, who abruptly resigned from the NSW Parliament two weeks ago, has strenuously denied any wrongdoing in connection with these matters. 

Counsel assisting ICAC, Scott Robertson, said in his opening address that ICAC would investigate whether Berejiklian engaged in conduct between 2012 and 2018 that was “liable to allow or encourage the occurrence of corrupt conduct” by Maguire, the former member for Wagga Wagga. 

The former premier gave evidence to ICAC last year that she had been in a “close personal relationship” with Maguire between about 2015 and 2018, which was not publicly disclosed.

Robertson also said the ICAC would investigate whether Berejiklian exercised her official functions dishonestly or partially by refusing to exercise her duty to report any reasonable suspicions about Maguire to the ICAC.

The former furniture salesman was forced to resign from the NSW Parliament in 2018 after the  evidence given in a separate ICAC inquiry (Operation Dasha) regarding possible corruption involving the former Canterbury Council. During the hearing it was revealed that Maguire had asked for a secret commission on property-related deals. 

In one phone call from 2017 intercepted by ICAC, Maguire referred to his efforts to broker another multimillion-dollar property deal, with Berejiklian replying: “I don’t need to know that bit.”

Operation Keppel is looking at two case studies in Maguire’s electorate: $5 million in government grants to the Australian Clay Target Association and $30 million to the Riverina Conservatorium of Music.

Berejiklian is scheduled to give evidence next week, represented by top silk Bret Walker SC.

Another former premier, Mike Baird, will give evidence this week, as will former Nationals leader John Barilaro and Liberal Deputy Leader Stuart Ayres. 

Robertson said ICAC was looking at whether those Wagga Wagga projects may have been given a level of priority or attention that they would not have received had Berejiklian not been in a relationship with Maguire. There was evidence they were not subjected to a competitive assessment of whether they should be preferred to other demands on public purse, he said.

The other witnesses who will appear this week will be mainly NSW public servants. Robertson said they will say they were influenced by what they understood to be Berejiklian’s support for or interest in those public projects. They are also expected to say they would have acted differently if they had known about her relationship with Maguire.

Was the Australian Clay Target Association a worthy recipient of $5 million of public money? According to its 2017 annual report, it was advised on January 2, 2017 that the $5 million grant to build a clubhouse was successful: “We must recognise the efforts of Daryl Maguire, the local state LNP member, without whom the project would never have been possible.” 

But it’s not like clay target shooting is a very popular sport. In 2017 there were only 14,126 members of the organisation, which puts it somewhere between Quidditch and curling in terms of public engagement. According to the accounts lodged that year, if you removed the state government grant, it still would have been in the black — recording a profit of $272,397.

There’s an obvious question: if there were only 14,000-odd old white blokes blasting away at toy tweeties and the organisation already had a heap of dough, what did they need the $5 million for? 

The first witness today is NSW Office of Sport director Michael Toohey, who was a director of project delivery for the Department of Premier and Cabinet between 2009 and 2018.

Paul Doorn, who served as an executive director within the Office of Sport between 2012 and 2017, is listed to appear on Tuesday, and Nigel Blunden, a former strategy director to Baird, is down for Wednesday.

The hearing continues.